When Evaluating Work Packages That Have a Negative Cost Variance

question 31

Multiple Choice

When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:

• A)activities that will be performed in the near term.
• B)activities that will be performed towards the end of the project.
• C)activities that will be performed at the end of the project.
• D)all the activities in the project.

Understand the characteristics of process manufacturing and its operational focus.

Comprehend the accounting procedures involved in process costing, including the calculation of equivalent units.

Understand the role of a production department in process costing.

Recognize the application and importance of hybrid costing systems and their relation to process and job order costing.

---

Definitions:

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity, by scientific means.

Labor Efficiency

A measure of produced output by a labor unit or units in a defined time period, indicating productivity.

Psychological Growth

Refers to the development and maturation of an individual's mind, character, and ability to cope with and understand their emotions and the emotions of others.